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Copper futures hold near 7-week low ahead of Fed, Bernanke

Published 06/19/2013, 05:09 AM
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Investing.com - Copper futures edged modestly higher on Wednesday, but held near the lowest level in seven weeks as investors were jittery ahead of the conclusion of the Federal Reserve’s policy meeting later in the global day.

On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.163 a pound during European morning trade, up 0.25% on the day.

New York-traded copper prices held in a tight range between USD3.148 a pound, the daily low and a session high of USD3.174 a pound.

Comex copper prices fell to USD3.139 a pound on Tuesday, the weakest level since May 3, on concerns the Federal Reserve could taper down its bond purchases.

Investors remained cautious amid speculation over whether the Fed will begin to scale back its easing program after Chairman Ben Bernanke said last month the bank could begin to taper asset purchases if the economy continued to improve.

Attention will focus on Bernanke’s press conference following the decision, which investors are hoping will provide further clues on how long the central bank will maintain its USD85-billion-a-month in bond purchases.

The industrial metal has been on the decline in recent weeks amid lingering concerns over the global economic outlook, especially in top consumer China.

The next slice of Chinese economic data to come out will be HSBC’s preliminary purchasing managers' index on Thursday.

Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere on the Comex, gold for August delivery eased up 0.1% to trade at USD1,367865 a troy ounce, while silver for July delivery dipped 0.4% to trade at USD21.58 a troy ounce.

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